Bank accounts: problems of identification

Please note that this briefing paper is no longer being updated but is kept here for readers seeking further detail. The most recent relevant briefing is Economic crime: The UK’s multi-billion pound problem.

This note gives practical guidance which Members may like to convey to constituents who find that their application for a bank account is refused.  More detail on the general legislative background and policy comment should also see standard note Money Laundering Regulations SN/BT/2592.

Opening a bank account has become harder rather than easier over the past few years as the banks have responded to fines in the $billions for money laundering failures from regulators.  This has come to be known as ‘de-risking’.

The main guidance comes from an international body – the Joint Money Laundering Service which is regularly updated.  This note reflects the 2014 guidance.

If individuals find that they are initially refused a bank account they should either try other banks or ask to speak to the branch (or higher) money laundering officer.